Buy Fei and Tribe corresponding to Airdrop for $1 combined…
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a stablecoin that is overcollateralized don’t allow their customers to redeem their collateral 1:1
they want to take the collateral for themselves
LOL
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I totally agree with you!
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I do think what you describe is perfectly legitimate behavior. And your framing is just right. FEI is meant to be a stable coin and therefore has fewer risks than TRIBE. This has been reflected in the behavior of the protocol so far. TRIBE has devalued far more than FEI, proportionally speaking. That’s in accordance with the perspective you just described. All I’d say is that FEI had inherent risks as well. Otherwise there would not have been a TRIBE airdrop. In fact, the TRIBE airdrop was the compensation for taking the risk of buying FEI before it’s stable.
As you say, there’s a spectrum of risk aversion. Those that want to take the most risk, accrue the most tribe. Those that want to moderate their risk keep some of their investment in FEI. What you omitted is that those that are entirely risk averse keep their capital out of experimental DEFI launches. And every one that has FEI now had that option before April 3rd.
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I don’t agree with you at all.
ffs, Resetting the peg back at $1 says, “Fine, it was clusterf***, but in the end, they made it right”. PCV still overcollateralized by a lot. TRIBE still has value. ETH didn’t dump in the interim. This was an experiment. Little harm, no foul. It’s not going to hurt (much) reputationally and the project can move on. We should all be so lucky to have this option for an outcome.
As opposed to what? How much confidence would anyone have to use a stablecoin that, while sitting on a few hundred million in GAINS (because of all the people who exited), couldn’t get the Team, investors, and TRIBE holders to vote to give people back their money.
What’s the logical conclusion to draw about what the same governance will do in the next crisis? I don’t think there’s even a question about what the right choice is.
Wow - what a bug…shouldn’t that have been no 1 prio to be checked in an audit for a stable coin well before launch? With flash loans being at the heart of most DeFi hacks these days…
I’m surprised that you cover this bad news with that voting process. I’m totally for fixing extremely critical bugs like this one before creating new ones with proposals like this one.
I bet arbitrageurs are closely analysing your proposals in this very minute and develop plans how to profit from any change. I wouldn’t change the mechanics of the system now (except fixing bugs). You would make the problem worse.
Everybody knew this launch could be bumpy…
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This is the Undo Button proposal: you get $1 for Genesis FEI if you burn your Genesis TRIBE. If you already sold your Genesis Tribe, you will have to market buy it to burn. This will mean current TRIBE holders are not diluted. It is the fairest proposal I’ve seen and one of the easiest to implement.
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With this change, we believe the Tribe community can begin to set a cultural tone for Fei Protocol of being flexible in its core mechanisms. FEI’s stability and utility should also be a priority in line with the PCV vision.
Congrats on keeping a flexible and open attitude towards how to keep an algorithmic peg. No one knows what works and this is all an experiment. The key to success will be this flexible attitude and continuing to try to see what actually works.
If there’s one thing that signals Fei will be successful, it is THIS attitude of flexibility and pragmatism.
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The projected reaction you’re drawing out seems reasonable: “Fine, it was a clusterfuck, but in the end, they made it right.” In fact, someone lucid might go as far as saying: “Oh boy a lot of people made a mistake and put more money than they should in a project they didn’t understand. It speaks wonders of the tribe community that they let them redeem their investment for a profit!”
What I’m worried about is that, as the last week has demonstrated, reactions don’t tend to be reasonable. Last week the spiel on twitter wasn’t: “Oh boy a lot of people made a mistake and put more money than they should in a project they didn’t understand. But there are ongoing discussions to return them their investment in order to release sell pressure and move forward at a more accurate valuation.” No, no. The spiel was: “Retail investors got REKT.” Or it was “Scammers!”. Or it was: “None of this is fair!” And that’s just a sample of the more moderate opinions.
We can’t control what people will say. Not even by capitulating to the demands of angered protesters.
yes these are good suggestions!
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I couldn’t agree with this more. That’s the beauty of PCV. It allows us to take radical decisions like this proposal. I hope we don’t pass this particular proposal. But I find comfort in knowing that I’m part of a system that takes such proposals seriously and extends their concern beyond the governance community.
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i agree to vote for $ 1 if they burn their free tribe
everyone who wants to leave the fei must return the tribe
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you said…
"The only thing that has been holding up the price is an expectation of a sensible exit option. If this expectation is betrayed, things will be even worse then before. "
I disagree
people will not be selling their tokens for 70 cents or 60 cents because most people are not willing to lose that much and because there is faith in this project, and even if some people start selling it will be bought up at a certain price. The reason why people want to exit is because people were chasing quick profits and they want their money back so they can put it somewhere else, most not crazy to dump this project at 40% loss and if some are crazy market will buy it up… Fei is already up as is.
Just do weighted average of 0.9 & 1 if option 1 & 2 in combination are > 50%.
Because if such a scenario happens that means most people obviously want to be able to redeem, but can’t agree on a price. Weighted average makes sense there.
E.g. Assume we have 30% $0.9 30% $1 40% $0, this means 60% aka majority want to be able to redeem, but cannot agree on price.
In this case we have 50% of the 60% voted for $0.9, the other 50% voted for $1, weighted average will be 0.95 (50% * 0.9 + 50% * 1).
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Problem is that there is no happy ending here.
If the PEG is below 1, Fei holders are going to complain (though they shouldn’t as long as they are still in the green with the extra Tribe).
Tribe holders are already taking the beating. If Fei holders can get out at 1:1 peg and basically freeriding with their extra airdropped Tribe than Tribe holders are even more in the red. Take it to the extreme, if all Fei is redeemed at 1:1, Tribe is going to free fall.
Proposal:
Fei holders can get out with 0.9 immediately. Or they can choose to lock Fei up, and either they get out than on the current rate, or choose the below
1 month lock up - guaranteed redeem at 0.92
2 month lock up - guaranteed redeem at 0.94
3 month lock up - guaranteed redeem at 0.96
4 month lock up - guaranteed redeem at 0.98
5 month lock up - guaranteed redeem at 1
This would allow everyone to redeem their Fei at 1 if they want to, but also would give incentive to hold Fei longer. That would give value to Tribe as it conserves the PVC at least for the time being. Also it would give time for the protocol to reestablish itself.
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It’s not about controlling what people say. It’s about attracting customers and partners for FEI going foward. Sure, you can burn me now and fine, I’m a big boy. Life is long though. These investors and team members are going to run into us for the rest of their lives.
If tribe holders vote to keep the money when there’s hundreds of millions extra when they’re in advantaged position, it’s obvious what they will do when under real pressure, so who’s going to want to work with them or be associated with the FEI token in the future. I don’t think the team or investors can do anything other than vote to redeem at $1.
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why enter 0.9 1 if those who want to sell will always vote for big ones, I don’t understand
should be
1.0 + burn free tribe
no change
everything !
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I like lock up mechanics much better than instant redemption with zero risk. However, it does nothing to alleviate the dilution suffered by TRIBE holders (beyond just the price dip, the supply they hold is less than it would have otherwise been without the FEI “All-in”-ers).
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there is no point in talking about buyback if they don’t return the free tribe
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